The income tax (I-T) authorities on Thursday conducted raids and survey on three builders and six share traders from Mumbai. Cash to the tune of Rs one crore was recovered.

Sources in the department said that the raids and survey on the builders were conducted following information of their involvement in cash transaction in sale of flats. One of the builders is also partner in a former dance bar in a western suburb that has been in controversy in the last two years. He is said to have moved to real estate business about three years back and has big projects in Worli, Khar and Juhu.

A senior I-T officer, requesting anonymity, as he is not authorised to speak to the media said that the builder has been putting unaccounted money of the son of a prominent Haryana politician. The two are known to be close friends.

The raids on the share traders, the officer said, was for bogus capital gain claims. While there is no tax on long-term capital gain (where shares purchased over a year back are sold), the tax on short-term capital gain is 10 per cent.

The shares purchased and sold within a year's time fall under short-term capital gains.

About the modus operandi, I-T officers said that these traders were not involved in any trading. "They showed trading only in books and the money was actually unaccounted," an officer said adding that this was done as otherwise they had to pay 33 per cent tax on this unaccounted money. Several documents were recovered from these traders.